Instant Update: Current Situation Unveiled
Tech Giants Predict Major Changes in Foodservice Industry
In early 2019, Branded, an investment and solutions platform for foodservice, technology, and innovation, met with top executives from one of the world's leading tech companies. This collaboration, while unusual, offered a unique opportunity as both entities gravitated towards radically different markets—Branded operating in the early-stage foodservice industry, while the massive tech company focused on cloud computing and web services.
As ocean tankers sail steadily through the global shipping industry, Branded was seen as a speedboat or even a jet ski, nimble and swift in navigating the waters of the foodservice industry. However, as Clint Eastwood's character Harry Callahan famously said in "Magnum Force," "a man's got to know his limitations."
During the discussions, the subject of predictions about the foodservice and hospitality industry emerged. Predictions about the increased embrace of technology and the digital transformation were a common theme. Braced by their technological DNA, Branded had recently invested in Chowly, a youthful company designed to combat the challenges surrounding "tablet hell" in restaurant settings.
Tablet hell was a problem faced by Branded's restaurants, which relied on multiple delivery platforms, each requiring a separate tablet. During peak times, servers were forced to manage these tablets manually, entering orders from delivery platforms into the point-of-sales (POS) system. This laborious process was argued to be the root of "tablet hell."
Chowly aimed to automate this process, seamlessly integrating with the POS system and freeing up the human workforce to focus on guests. A manager at Duke's 83 Street & Second Avenue location, who had threatened to quit if Chowly were discontinued, was a testament to its effectiveness.
Branded's investment in Chowly was not their only foray into labor-saving technologies. PourMyBeer, another early investment, offered a beer wall that powered their POS system—an innovation that was praised by staff at Branded-owned locations.
Returning to the table, the tech industry veteran predicted a significant shift in the foodservice landscape. He suggested that the kitchen would disappear akin to the sewing room due to the dominance of food away from home (FAFH). This prediction posited that FAFH would become more cost-effective, convenient, and efficient, thereby rendering the traditional dinnertime ritual obsolete.
As the conversation progressed, Branded's team agreed that it was essential to understand one's short-term and long-term objectives. The tech industry leader was thinking on a grand scale, predicting the transformation of the foodservice industry over the next hundred years. Meanwhile, Branded focused on its niche market and helping early-stage companies navigate the complexities of the foodservice and hospitality sector.
Fast forward to 2023, and the predicted trend holds true. According to the U.S. Department of Agriculture, total food spending had reached a staggering $2.6 trillion, with a 0.4% month-over-month increase and a 58.5% share of total food expenditures attributed to FAFH.
The rising popularity of FAFH can be attributed to several factors: the convenience offered by delivery apps like DoorDash, Uber Eats, and Grubhub; the limited time and energy available for home cooking; the growing demand for unique and interactive dining experiences; the variety of dietary options; and, finally, the price differential between FAFH and food-at-home ("FAH").
However, hospitality operators need to maintain a keen eye on the present if they are to thrive within this ever-evolving industry. While technology suggestions are welcome, it is crucial to cater to the current challenges and capitalize on opportunities.
Time and again, the Hospitality Industry has displayed a just-in-time mentality, with operators primarily focusing on immediate victories rather than long-term strategic planning. As such, tech innovators striving to sell into this industry must first familiarize themselves with the operators' priorities, needs, and wants.
Finally, it's essential to lend a helping hand in times of crisis. Caroline Skinner, COO of Tupelo Honey, reached out to Branded following Hurricane Helene's devastation in Western North Carolina. Tupelo Honey is working alongside local communities to provide additional aid and contribute to the disaster relief efforts. Interested individuals can donate to selected charities through this consolidated link: https://www.tupelohoneycafe.com/wnc-relief/.
[1] Bureau of Labor Statistics, U.S. Department of Labor, "Consumer Price Index - All Urban Consumers: April 2025" (Accessed May 27, 2025) [Online]. Available at: https://www.bls.gov/cpi/#tables
[2] United States Department of Agriculture, Economic Research Service, "Food Expenditure Data" (Accessed May 27, 2025) [Online]. Available at: https://www.ers.usda.gov/data-products/food-expenditures/
[3] National Restaurant Association, "2024 State of the Restaurant Industry" (Accessed May 27, 2025) [Online]. Available at: https://restaurant.org/research/reports/state-of-the-restaurant-industry
[4] "Food-away-from-home prices expected to rise in 2024, outpacing inflation across all CPI categories." (Accessed May 27, 2025) [Online]. Available at: https://www.restaurantbusinessonline.com/financing/food-away-from-home-prices-expected-rise-2024-outpacing-inflation-across-all-cpi-categories
[5] "Inflation Remains Moderate Despite Surge in Energy Costs in April." (Accessed May 27, 2025) [Online]. Available at: https://www.bloomberg.com/news/articles/2025-05-12/inflation-remains-moderate-despite-surge-in-energy-costs-in-april
- Tech Giants and investment platforms like Branded are embracing the integration of technology in the foodservice industry, with recent investments in companies like Chowly, aiming to streamline the laborious process of managing multiple delivery platforms.
- The hospitality industry is transitioning towards a digital transformation, with leaders predicting the eventual disappearance of the traditional kitchen setup, making dining out more cost-effective, convenient, and efficient.
- Consumer behavior is shifting towards food-away-from-home (FAFH), with factors such as convenience, unique dining experiences, variety of dietary options, and price differential contributing to its growing popularity.
- To thrive in this evolving landscape, hospitality operators must balance short-term and long-term objectives, while also catering to current challenges and capitalizing on opportunities in the food-and-drink sector.
- Tech innovators seeking to enter the foodservice industry must familiarize themselves with operators' priorities, needs, and wants to effectively sell their solutions.
- Hospitality companies can also plays a crucial role during crises, as demonstrated by Tupelo Honey's collaboration with local communities for disaster relief efforts following Hurricane Helene.
- Understanding consumer lifestyle preferences and investing in technologies that enhance the dining experience, such as PourMyBeer's beer wall, can help businesses gain a competitive edge in the foodservice industry.
